3SOF

This company used to be a software company but now it is primarily a medical services company, with increasing revenues and almost profitable:

Dalrada Financial Corporation Files Annual Report (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=&param=archive&siteid=mktw&guid=%7B485934B2%2D516D%2D4CEB%2DBB1F%2D36BDD4C81A23%7D)

I know this might be up a lot at the open but I don't care, I perceive this with a lot more value than what is priced in, so I'm buying $1,000 of DRDF.OB at the open for the 3 Pennies on Fire Portfolio.

Great day trades!!!

Applaude.

Anybody have any comments?  Seems to be a lot of selling pressure.  Couldn't be profit taking at this level. ???

I got in yesterday AM with 200K shares (sounds impressive, at least).  I've been watching this thing, but it's pretty stagnant.

Anyone have any advice? 

I also got in yesterday AM. Probably that move was too fast this stock, although I agree with David that it seems under valued:

Delrada announced a gross profit of $2.946 million based on $19.5 million revenues for the fiscal year ended June 30, 2005.

On September 28th The Solvis Group (Delrada's 90% owned subsidiary) announced a strategic alliance agreement with SSL, which will "refer a minimum of $25 million in business to The Solvis Group within the next 90 days".
These revenues will make Delrada's current quarter revenues higher than whole previous fiscal year.

On the same newswire The Solvis Group, now traded in the pink sheets announced that:
"We continue to work on completing the work associated with auditing our financial results for the past few years in order to return to trading on the NASD Electronic Bulletin Board," said Green. Once completed, shareholders can expect regular reports on our financial results and other developments as The Solvis Group grows" he added.

Pennies have different dynamics then the mainstream stocks. If you want some big honey then you have to be little patient and may be little stung. Dont know where DRDF will go but my plan is simple: sell with David. All those who sold at current levels, may be buying higher. And on the bad side you may see this one dropping like a rock. Holding on this one for atleast one bag.

This is the last stock to update and I'm tired, but at first sight this doesn't seem like it has 1 bag, it looks much more like a 10 bagger !!!

After the close I'll take a look in more detail to it, but I'll certainly hold DRDF.OB.

My low placed order of some lot of zeros was not executed again today :)

Seems like I have to be content with whatever I have in hand. 

Seems like we have to be content that your order was not filled ;D.

A wise man told me once: Don't ever chase two things: Busses & women. I guess he forgot to mention stocks  ::). This is one habbit I have to do less often.

David will not be able to post the regular daily updates today. But he gave me instructions to hold this position.

This is easy. This company was a micro software company with no success at all:

«The Company also includes an imaging products and services unit, Imaging Tech, Inc., which provides a variety of innovating products and services associated with graphics, photography, and color management. Its technologies include ColorBlind(R) software and PhotoMotion Images(TM).»

But now it has changed its business focus to:

«Dalrada provides services through its wholly-owned subsidiaries and division, SourceOne Group, Inc., Master Staffing and Heritage Staffing. The Solvis Group, Inc. (SLVG), its 90 percent owned subsidiary, includes several operating units, including CallCenterHR(TM), Worldwide of California, and M&M Nursing. These companies and business units provide a broad range of financial services, including benefits and payroll administration, health and workers' compensation insurance programs, personnel records management, employer liability management, and temporary staffing services, to small and medium-sized businesses.»

The market cap is just $2.64M, but revenues were as follows:

«RESULTS OF OPERATIONS (IN $000)

YEAR ENDED JUNE 30, 2005 COMPARED TO YEAR ENDED JUNE 30, 2004
-------------------------------------------------------------

REVENUES

Total revenues were $19,476 and $13,526 for the year ended June 30, 2005 and
2004, respectively; an increase of $5,950 (44%). The principal reason for the
increase is due to a full year of revenue from our temporary staffing division
for the year ended June 30, 2005 as compared to only ten months for the same
period in 2004 and an overall increase in revenue in our staffing division.»

$19.48M in revenues and market cap of $2.64M. Although revenues grew, the company experienced a loss. But I don't think this will continue for much longer, and dilution of the shares may start to decrease since they have 1 billion shares authorized and already 735 million issued and outstanding.

Technically the stock seems to be coming down to test support, prior resistance line. I will continue holding DRDF.OB.

Does anyone know why DRDF spiked to .04 on 10/14/2005?  I can't find any news, but that sure was some spike.

I'm in 280,000 @ .0036 and 280,000 @ .0037.  The OOPS effect of placing an order with one still open.

Thanks for any info. 

Wisebuys Their annual report was released with the info below on the 14th. Revenues up 44.4%
http://biz.yahoo.com/prnews/051014/laf026.html?.v=30




SAN DIEGO, Oct. 14 /PRNewswire-FirstCall/ -- Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News), which provides a variety of financial services to small and medium-sized businesses, allowing its customers to outsource many human resources tasks, today announced its filing of Form 10KSB with the U.S. Securities & Exchange Commission. The Company reported revenues of $19.5 million for the fiscal year ended June 30, 2005, up 44.4 percent from revenues of $13.5 million for the fiscal year ended June 30, 2004. Dalrada announced a gross profit of $2.946 million

I really have a hard time understanding DRDF's stock price. The value is coming from their 90% ownership of the Solvis Group, a subsidiary traded on the Pink Sheets under the symbol SLVG.PK.

I would like to know the market cap of SLVG, but I can't. Does anyone knows how to get the market cap of Pink Sheets traded stocks? This is why I don't trade stocks in the Pink Sheets, I don't know their market cap, how can I evaluate price from a fundamental point of view?

Anyway, look at the news coming from the company:

News for The Solvis Group (http://www.pinksheets.com/quote/news.jsp?symbol=SLVG)

The news corroborates the results coming out of DRDF.OB, which say the company had $19.5M in revenues for the fiscal year ended June 30, 2005.

The chart is still bullish after the recent pull back, I will continue holding DRDF.OB.

David,
I called  Solvis the company, spoke to the person that answered and I left message . The CFO Randall Jones called me back on my voice mail..I will call him back tommorrow to get the O/S and auth shs... The pink sheet site says N/A as it relates to our question. I will let you know the two numbers when we connect.

Madge.

Quote from: madge20 on October 25, 2005, 05:44:18 PM
David,
I called  Solvis the company, spoke to the person that answered and I left message . The CFO Randall Jones called me back on my voice mail..I will call him back tommorrow to get the O/S and auth shs... The pink sheet site says N/A as it relates to our question. I will let you know the two numbers when we connect.

Madge.

Thanks a lot Madge, what a team work  :D

In the meantime there was no new technical or fundamental information for DRDF.OB, I will continue holding the stock.

David,
Mr Jones CFO at Solvis called me back today. Here is an account of our brief talk. ..He needs to check with his attorneys that it is ok to give me O/S and Auth shs because they are a pinksheet company currently doing the neccessary 10Q's and K to get on the OTC BB. When I asked he said it still could be 2-3 months until they get an answer on listing and off pink sheets. He said he would call me back either way with the share count or an answer that it would have to wait until they are done their filings and on BB.. Bottom line.. we still have no idea how many shs are O/S and Auth.. I will let you know when he contacts me after speaking to his attys..
Madge

Quote from: madge20 on October 28, 2005, 03:37:35 PM
David,
Mr Jones CFO at Solvis called me back today. Here is an account of our brief talk. ..He needs to check with his attorneys that it is ok to give me O/S and Auth shs because they are a pinksheet company currently doing the necessary 10Q's and K to get on the OTC BB. When I asked he said it still could be 2-3 months until they get an answer on listing and off pink sheets. He said he would call me back either way with the share count or an answer that it would have to wait until they are done their filings and on BB.. Bottom line.. we still have no idea how many shs are O/S and Auth.. I will let you know when he contacts me after speaking to his attys..
Madge

Thanks a lot for the info Madge ! It seems it is really a politics thing not to let people know how many shares authorized and outstanding are on Pink Sheet traded stocks. Now we know they're trying to bring the Solvis Group to the OTCBB, that would be good news to DRDF.OB.

I expect each upcoming quarter to be a blockbuster in revenues, so there's nothing else to do but to continue holding DRDF.OB, I see this penny stock with great potential.

David,
Thanks for your opinion based on the info I received from CFO.. If I do not hear from him within a week or two I will call him back..
Thanks,
Madge  ( I'm male but use this handle in rememberence of my girl Schnauzer that died in June)She was a really great dog

Quote from: madge20 on October 31, 2005, 04:25:35 PM
David,
Thanks for your opinion based on the info I received from CFO.. If I do not hear from him within a week or two I will call him back..
Thanks,
Madge  ( I'm male but use this handle in rememberence of my girl Schnauzer that died in June)She was a really great dog

Ok Madge, I'm glad you explained that before I start sending you  :-*  Lol.

On MarketWatch.com I got the Solvis Group with just $720,790 in market cap (http://www.marketwatch.com/tools/quotes/quotes.asp?symb=slvg&vc=0&siteid=mktw&dist=dropmenu), but probably they don't know it either. If that's the case SLVG would be outrageously undervalued and would rise 10 fold in a few days.

The stock rose 40% today, but with almost no volume ... some interesting news for SLVG, check this:

The Solvis Group Strategic Alliance Agreement With SSL Expected to Provide $25 Million in Additional Revenues in 90 Days (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=&param=archive&siteid=mktw&guid=%7BED3840BF%2D5FAC%2D4256%2D98C7%2DFA238DA1E127%7D)

Also read this: «Brian Bonar, CEO of the Solvis Group (http://www.thesolvisgroup.com), said, "As previously announced, we anticipated fifty million dollars in revenues for the next fiscal year in conjunction with our Strategic Alliance program. We are pleased to confirm that we will not only meet this run rate, but now anticipate that our sales results will be significantly higher."»

What the hell is this, DRDF.OB, a 90% owner of SLVG, has a market cap of just $2.79M  :o

I see 10 bags on DRDF.OB.

I jumped in at 0.0035 lets see  8)

Quote from: ket1390 on November 01, 2005, 10:25:09 AM
I jumped in at 0.0035 lets see  8)

Good luck ket1390, you're already ahead a bit  :) Volume was the highest of the last 6 days, so many a rally is about to happen. I find DRDF.OB to be extremely undervalued, and will look for a huge spike up with every quarterly earnings report.

it is boiling here looks good  ;D

OK, In with you guys on this.

In at .0039

Ken

I'm averaging up with this one.. Bought some more at .004..
Good Luck all..

Madge

More volume and up DRDF.OB goes. I wonder when will the company present the 3rd quarter results? (for them I think it is 1st quarter, never quite understood how in a country like America, where people are so smart, there's no uniformity with this quarter thing? Why isn't it always the same and equal to the calendar year?)

It doesn't matter when, I think there will be a huge spike up on this stock when that day arrives. If the spike comes from an higher base, great.

I'll HOLD DRDF.OB.

down today with low volume nothing to worry  8)

New SEC filling-10QSB/A

http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=3776635&doc=1&total=&back=2&g=&attach=on

The final paragraph of this filing::::

Historically, we have financed our operations primarily through cash generated from operations, debt financing, and the sale of equity securities. Additionally, in order to facilitate our growth and future liquidity, we have made some strategic acquisitions.

As a result of some of our financing activities, there has been a significant increase in the number of issued and outstanding shares. During the nine months ended March 31, 2005 and the year ended June 30, 2004, we issued an additional 130,037,455 and 371,126,679 shares, respectively. These shares of common stock were issued primarily for corporate expenses in lieu of cash, for acquisition of businesses, for the conversion of convertible debentures and other debt, and for the exercise of warrants.

As of March 31, 2005, we had negative working capital of $22,113, a decrease in working capital of $245 since June 30, 2004.

Net cash used in operating activities was $186 for the nine months ended March 31, 2005 as compared to net cash used in activities of $1,560 for the prior-year period; a decrease of $1,374.

Cash provided by financing activities was $400 for the nine months ended March 31, 2005, a decrease of $294 from the prior-year period.

We have no material commitments for capital expenditures. Our 5% convertible preferred stock (which ranks prior to our common stock), carries cumulative dividends, when and as declared, at an annual rate of $50 per share. The aggregate amount of such dividends in arrears at March 31, 2005, was approximately $498.

Our capital requirements depend on numerous factors, including market acceptance of our products and services, the resources we devote to marketing and selling our products and services, and other factors. The report of our independent auditors accompanying our June 30, 2004 financial statements includes an explanatory paragraph indicating there is a substantial doubt about our ability to continue as a going concern, due primarily to the decreases in our working capital and net worth.

NEWS....The Solvis Group Announces Plans to Distribute Global Food Technologies Stock to Its Shareholders
Wednesday November 16, 4:10 pm ET


ANAHEIM, Calif., Nov. 16 /PRNewswire-FirstCall/ -- The Solvis Group (OTC: SLVG - News), which previously announced the purchase of its wholly owned subsidiary, Boulevard Acquisition Corporation, a publicly-reporting shell, by Global Food Technologies, Inc., today announced that its Board of Directors has agreed to distribute up to 25 percent of the surviving corporation's stock, which The Solvis Group will receive pursuant to its agreement with Global Food Technologies, to its shareholders of record as of October 31, 2005. According to the Form 8-K, filed by Global Food Technologies on August 19, 2005, the 1.52 million shares of its stock, distributed to The Solvis Group, is presently valued at $2.34 million, or approximately $1.50 per share.
ADVERTISEMENT


Further details of the transaction will be announced by the Board and will be detailed in upcoming filings by the company with the U.S. Securities and Exchange Commission. "We are very pleased to reward our loyal shareholders with this benefit," said Brian Bonar, CEO of The Solvis Group, "and we anticipate the distribution of these shares to Solvis shareholders in early 2006."

Mr. Bonar said that the Board of Directors of The Solvis Group and Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News), the parent company, have unanimously resolved that Dalrada Financial Corporation, the officers and directors of Dalrada and Solvis, and their subsidiaries, are exempt from the distribution of the shares from Global Food Technologies.

Global Food Technologies (http://www.globalfoodtech.com) is a U.S. based biotech firm dedicated to using its patented natural scientific food processing technologies to substantially increase the quality and value of commercially-packaged seafood, poultry and meat, and to make those products safer for human consumption through elimination of disease causing pathogens.

The Solvis Group recently announced that certain operating units have been relocated to Southfield, Michigan. Corporate headquarters remain in Anaheim, California.

About The Solvis Group:

The Solvis Group (OTC: SLVG - News), a subsidiary of Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News), includes a number of operating units, including M&M Nursing Services, CallCenterHR(TM), and Master Staffing. The Company provides a variety of innovative financial services to businesses, including comprehensive human resource administration including payroll and workers compensation insurance; and employee benefits such as health insurance, supplemental insurance, HSA savings plans, 125 cafeteria plans, and 401(k) plans. The Company also offers debit card payroll accounts and payroll advances. These services enable small employers to offer benefits and services to their employees that are generally available only to large companies.

The Company also includes an imaging products and services unit, Imaging Tech, Inc., which provides a variety of innovating products and services associated with graphics, photography, and color management. Its technologies include ColorBlind® software and PhotoMotion Images(TM). For more information visit The Solvis Group websites at: www.thesolvisgroup.com, www.mandmnursing.com, www.colorvisuals.com, and www.color.com.

Safe Harbor:

Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.


    CONTACT:
    Brian Bonar, CEO
    The Solvis Group, Inc.
    1520 S. Lewis St.
    Anaheim, CA 92805
    (858) 277-5300
    [email protected]

    Paul Knopick
    E & E Communications
    949/707-5365
    [email protected]




--------------------------------------------------------------------------------
Source: The Solvis Group


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QuoteAs a result of some of our financing activities, there has been a significant increase in the number of issued and outstanding shares. During the nine months ended March 31, 2005 and the year ended June 30, 2004, we issued an additional 130,037,455 and 371,126,679 shares, respectively. These shares of common stock were issued primarily for corporate expenses in lieu of cash, for acquisition of businesses, for the conversion of convertible debentures and other debt, and for the exercise of warrants.

Thanks for your post joozt, but you scared me  :D

But that increase on the number of shares outstanding was already considered in my analysis:

«The aggregate market value of the voting stock held by non-affiliates on June
30, 2005 was approximately $2,153,000 based on the average of the bid and asked
prices of the issuer's common stock in the over-the-counter market on such date
as reported by the OTC Bulletin Board. As of June 30, 2005, 735,248,867 shares
of the issuer's Common Stock were outstanding. As of August 31, 2005,
752,908,407 shares of the issuer's Common Stock were outstanding.

That still leaves the company with just $2.79M in market cap, and revenues of $19.5M  :o

I think DRDF.OB is a sure 5 bagger, I just need time and patience. Altough I'm pretty positive on this outcome, I have just a little more than $1,000 invested on this penny stock.

Link to article posted on RB

http://www.crainsdetroit.com/cgi-bin/article.pl?articleId=28288

I spoke with Brian B   CEO of DRDF on Friday after market close.  We spoke about if their was any benefit with the food service distribution to SOLVIS.. he said " It more directly benefits SOLVIS  but also in a round about way DRDF because DRDF owns a lbig % of SOLVIS.. He also told me he is projecting another 40% growth is REVS next year on top of the 40% this year for DRDF. Sounds good for us shareholders..
The short week might be interesting for us..

David ..when I talked with CEO on Friday the share numbers you have hadn't cahnged. Thought you would like to know ;D

http://rjohara.net/money/stocks/2005-10-15-SLVG-solvis-group-stock.html

Website has been down for weeks too ?

FYI  ;)

Form 10QSB for DALRADA FINANCIAL CORP


--------------------------------------------------------------------------------

21-Nov-2005

Quarterly Report



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

(IN THOUSANDS, EXCEPT SHARE DATA)
The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included in the Company Annual Report on Form 10-KSB for the year ended June 30, 2005. The statements contained in this Report on Form 10-QSB that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, hopes, intentions or strategies regarding the future. Forward-looking statements include statements regarding: future product or product development; future research and development spending and our product development strategies, and are generally identifiable by the use of the words "may", "should", "expect", "anticipate", "estimates", "believe", "intend", or "project" or the negative thereof or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements (or industry results, performance or achievements) expressed or implied by these forward-looking statements to be materially different from those predicted. The factors that could affect our actual results include, but are not limited to, the following: general economic and business conditions, both nationally and in the regions in which we operate; competition; changes in business strategy or development plans; our inability to retain key employees; our inability to obtain sufficient financing to continue to expand operations; and changes in demand for products by our customers.

OVERVIEW

We provide a variety of financial services to small and medium-size businesses. These services allow our customers to outsource many human resources tasks, including payroll processing, workers' compensation insurance, health insurance, employee benefits, 401k investment services, personal financial management, and income tax consultation. In November 2001, we began to provide these services to relieve some of the negative impact they have on the business operations of our existing and potential customers. To this end, through strategic acquisitions, we became a professional employer organization ("PEO").

We provide financial services principally through our wholly-owned SourceOne Group, Inc. ("SOG") subsidiary. These units provide a broad range of financial services, including: benefits and payroll administration, health and workers' compensation insurance programs, personnel records management, and employer liability management. Through our Jackson Staffing subsidiary (and MedicalHR and CallCenterHR operating units), we provide temporary staffing services to small and medium-sized businesses - primarily to call centers and medical facilities.

In January 2003, we completed the acquisition of controlling interest (approximately 85%) in the shares of Greenland Corporation whose shares are traded on the NASD Electronic Bulletin Board under the symbol GRLC. Subsequently, in March 2004, we entered into an agreement with Greenland to return most of our shares in Greenland in return for Greenland's forgiveness of certain DRDF indebtedness and business opportunities. We no longer have an affiliation with Greenland Corporation.

In January 2003, we completed the acquisition of a controlling interest (85%) in the shares of Quik Pix, Inc. ("QPI"). QPI shares are traded on the National Quotation Bureau Pink Sheets under the symbol QPIX. QPI is a visual marketing support firm located in Anaheim, California. Its principal service is to provide photographic and digital images mounted for customer displays in tradeshow and other displays .Its principal product, PhotoMotion is a patented color medium of multi-image transparencies. The process uses existing originals to create the illusion of movement, and allows for six to five distinct images to be displayed with an existing lightbox.

In September 2003, we hired two key persons and acquired the operations of the temporary staffing service then owned by Jackson Staffing, LLC. In order to formalize this arrangement, we entered into an acquisition agreement with Jackson Staffing effective September 1, 2003 and accordingly, the financial statements of Jackson Staffing from September 1, 2003 are included in our financial statements.

In April 2004, we transferred our ColorBlind software technology to QPI. ColorBlind software provides color management to improve the accuracy of color reproduction - especially as it relates to matching color between different devices in a network, such as monitors and printers. ColorBlind software products are marketed internationally through direct distribution, resellers, and on the internet through our color.com website.

Our business continues to experience operational and liquidity challenges. Accordingly, year-to-year financial comparisons may be of limited usefulness now and for the next several periods due to anticipated changes in our business as these changes relate to potential acquisitions of new businesses and changes in products and services.

On June 28, 2004, we completed an acquisition of certain assets of M&M Nursing (M&M"). The purchase price was 5,000,000 shares of our common stock valued at $31 plus the assumption of $204 of liabilities. M&M is a temporary staffing agency primarily for nurses.

On April 4, 2005, we completed an acquisition of certain assets of Heritage Staffing Group, Inc. ("Heritage"). The purchase price was $80 consisting of $20 in cash, a $45 note payable to the owner of Heritage and 5,000,000 warrants to purchase shares of DRDF common stock valued at $14. Heritage is in the temporary staffing business and we acquired certain assets of Heritage to complement our other temporary staffing business.

On May 5, 2005 we established a self-insured worker's compensation program. In connection with this self-insured program, we were required to establish a worker's compensation deposit in the amount of $2,625. Our maximum exposure under this self-insured worker's compensation program is $4,200 and we are liable up to $250 per occurrence. We purchase coverage from a worker's compensation insurer to cover additional losses above the policy limits. We believe that we can expand our staffing business as a result of us establishing this self-insured worker's compensation program

Our current strategy is: to expand our financial services businesses, including PEO services and temporary staffing, and to continue to commercialize imaging technologies, including PhotoMotion Images and ColorBlind color management software through our QPI subsidiary.

To successfully execute our current strategy, we will need to improve our working capital position. The report of our independent auditors accompanying our June 30, 2005 consolidated financial statements includes an explanatory paragraph indicating there is a substantial doubt about our ability to continue as a going concern, due primarily to our recent loss from operations, the decreases in our working capital and net worth. In addition, we are late in our filing of payroll tax returns for certain of our PEO divisions and are delinquent on the payment of payroll tax withholdings. We plan to overcome the circumstances that impact our ability to remain a going concern through a combination of achieving profitability, raising additional debt and equity financing, and renegotiating existing obligations. In addition, we will continue to work with the Internal Revenue Service and State taxing Authorities to reconcile and resolve all open accounts and issues.

In recent years, we have been working to reduce costs through the reduction in staff and reorganizing our business activities. Additionally, we have sought to reduce our debt through debt to equity conversions. We continue to pursue the acquisition of businesses that will grow our business.

There can be no assurance that we will be able to complete any additional debt or equity financings on favorable terms or at all, or that any such financings, if completed, will be adequate to meet our capital requirements. Any additional equity or convertible debt financings could result in substantial dilution to our shareholders. If adequate funds are not available, we may be required to delay, reduce or eliminate some or all of our planned activities, including any potential mergers or acquisitions. Our inability to fund our capital requirements would have a material adverse effect on the Company.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

Management's Discussion and Analysis or Plan of Operations discuss our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and judgments, including those related to allowance for doubtful accounts, value of intangible assets and valuation of non-cash compensation. We base our estimates and judgments on historical experiences and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our consolidated financial statements include

estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources, primarily allowance for doubtful accounts, estimated fair value of equity instruments used for compensation, estimated tax liabilities from PEO operations and estimated liabilities associated with worker's compensation liabilities. These accounting policies are described at relevant sections in this discussion and analysis and in the notes to the consolidated financial statements included in our Annual Report on Form l0-KSB for the year ended June 30, 2005.

REVENUE RECOGNITION

PEO SERVICE FEES AND WORKSITE EMPLOYEE PAYROLL COSTS


We recognize our revenues associated with our PEO business pursuant to EITF 99-19 "Reporting Revenue Gross as a Principal versus Net as an Agent." Our revenues are reported net of worksite employee payroll cost (net method). Pursuant to discussions with the Securities and Exchange Commission staff, we changed our presentation of revenues from the gross method to an approach that presents our revenues net of worksite employee payroll costs (net method) primarily because we are not generally responsible for the output and quality of work performed by the worksite employees.

In determining the pricing of the markup component of the gross billings, we take into consideration our estimates of the costs directly associated with our worksite employees, including payroll taxes, benefits and workers' compensation costs, plus an acceptable gross profit margin. As a result, our operating results are significantly impacted by our ability to accurately estimate, control and manage our direct costs relative to the revenues derived from the markup component of our gross billings.

Consistent with our revenue recognition policy, our direct costs do not include the payroll cost of our worksite employees. Our direct costs associated with our revenue generating activities are comprised of all other costs related to our worksite employees, such as the employer portion of payroll-related taxes, employee benefit plan premiums and workers' compensation insurance premiums.

SALES OF PRODUCTS



Revenue is recognized when earned. Our revenue recognition policies are in compliance with all applicable accounting regulations, including American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 97-2, Software Revenue Recognition, and SOP 98-9, Modification of SOP 97-2, With Respect to Certain Transactions. Revenue from products licensed to original equipment manufacturers is recorded when OEMs ship licensed products while revenue from certain license programs is recorded when the software has been delivered and the customer is invoiced. Revenue from packaged product sales to and through distributors and resellers is recorded when related products are shipped. Maintenance and subscription revenue is recognized ratably over the contract period. When the revenue recognition criteria required for distributor and reseller arrangements are not met, revenue is recognized as payments are received. Provisions are recorded for returns and bad debts. Our software arrangements do not contain multiple elements, and we do not offer post contract support.

TEMPORARY STAFFING



We record gross revenue for temporary staffing. We have concluded that gross reporting is appropriate because we (i) have the risk of identifying and hiring qualified employees, (ii) have the discretion to select the employees and establish their price and duties and (iii) bear the risk for services that are not fully paid for by customers. Temporary staffing revenues are recognized when the services are rendered by our temporary employees. Temporary employees placed by us are our legal employees while they are working on assignments. We pay all related costs of employment, including workers' compensation insurance, state and federal unemployment taxes, social security and certain fringe benefits. We assume the risk of acceptability of our employees to our customers.

RESULTS OF OPERATIONS (IN $000)

THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2004



REVENUES

Total revenues were $12,040 and $4,428 for the three months ended September 30, 2005 and 2004, respectively; an increase of $7,612 (172%). The principal reason for the increase is due to the expansion of our temporary staffing division with the acquisition of Heritage Staffing in April 2005 and the formation of our self-insured worker's compensation plan in May 2005.

TEMPORARY STAFFING

In September 2003, we entered into an agreement to purchase a temporary staffing business through the organization of CallCenterHR and MedicalHR and the acquisition of Jackson Staffing. In June 2004, we entered into an agreement to purchase certain assets of M&M Nursing, a temporary staffing agency for nurses. During fiscal 2005, Jackson Staffing and M&M Nursing were renamed Solvis Group, Inc. Temporary Staffing revenues were $11,554 and $3,905 for the three months ended September 30, 2005 and 2004, respectively; an increase of $7,649 (196). The principal reason for the increase is due to the expansion of our temporary staffing division due to our focus to grow this segment of our business.

PEO SERVICES

PEO revenues were $295 and $372 for the three months ended September 30, 2005 and 2004, respectively; a decrease of $77 (21%) due primarily to the decrease in our PEO customer base due to an increased focus by us to expand our temporary staffing business.

PRODUCTS

Sales of products were generated principally from our QPI subsidiary. Products revenues were $188 and $125 for the three months ended September 30, 2005 and 2004, respectively; an increase of $63 (50%). The increase is principally due to increased sales of photographic and digital images though our QPI subsidiary.

SOFTWARE

Software revenues were $3 and $26 for the three months ended September 30, 2005 and 2004, respectively; a decrease of $23 (86%). Revenues from licenses and royalties for the periods were insignificant.

Royalties and licensing fees vary from quarter to quarter and are dependent on the sales of products sold by OEM customers using our technologies. These revenues continue to decline as we have elected to transfer our ColorBlind software to QPI, which has accelerated product development and begun to implement a more aggressive product sales program.

COST OF PRODUCTS SOLD

Costs of temporary staffing for the three months ended September 30, 2005 and 2004 was $10,826 (94% of temporary staffing revenue) and $3,548 (91% of temporary staffing revenue), respectively. The significant increase is due to the significant increase in temporary staffing revenue.

Cost of PEO services for the three months ended September 30, 2005 and 2004 was $3544 (120% of PEO revenues) and $280 (75% of PEO revenues), respectively. The decrease in gross profit is due primarily to us incurring additional employee benefit related costs.

Cost of products sold for the three months ended September 30, 2005 and 2004 were $11 (6% of product sales) and $23 (18% of product sales), respectively. Cost of sales for products in not significant in terms of dollars.

Cost of software, licenses and royalties for the three months ended September 30, 2005 and 2004 were $0 (0% of software, license and royalties revenue) and $3 (12% of software, license and royalties revenue), respectively. Cost of sales for software in not significant in terms of dollars.

OPERATING EXPENSES

Operating expenses for the three months ended September 30, 2005 and 2004 were $1,782 and $1,009, respectively; an increase of $773 (77%). The increase is principally due to an overall increase in our temporary staffing business as reflected in the 196% increase in revenues for this segment of our business.

OTHER INCOME AND EXPENSE

Interest expense and financing costs for the three months ended September 30, 2005 and 2004 was $424 and $483 respectively; a decrease of $59 (12%). The decrease is principally due to the write off of the unamortized debt discounts associated with the conversion of debentures into common stock for the three months ended September 30, 2004 (there were no conversions during the three months ended September 30, 2005) offset by an increase due to the amount of debt outstanding.

GAIN ON EXTINGUISHMENT OF DEBT

Gain on the extinguishment of debt was $1341 and $0 for the three months ended September 30, 2005 and 2004, respectively. The amounts related to accounts payable, which had become stale and uncollectible under the Statute of Limitations in the State of California and upon obtaining a legal opinion with respect to the State of California Statute of Limitations.

PENALTIES AND INTEREST

Penalties and interest related to our past due payroll tax liabilities for the three months ended September 30, 2005 and 2004 was $273 and $0 respectively.

LIQUIDITY AND CAPITAL RESOURCES

Historically, we have financed our operations primarily through cash generated from operations, debt financing, and the sale of equity securities. Additionally, in order to facilitate our growth and future liquidity, we have made some strategic acquisitions.

As of September 30, 2005, we had negative working capital of 26,963 as compared to negative working capital of $26,780 at June 30, 2005, a decrease in working capital of $183 since June 30, 2005.

The Company is late on filing payroll tax returns and owes approximately $9.3 million in past due payroll taxes.

Net cash provided by operating activities was $991 for the three months ended September 30, 2005 as compared to net cash used in activities of $436 for the prior-year period; an increase of $1,427. The principal reason for the increase was the increase in account payable and accrued expenses and an increase in PEO liabilities.

Cash used in financing activities was $704 for the three months ended September 30, 2005 as compared to cash provided by financing activities of $264 for the three months ended September 30, 2004, a decrease of $968 from the prior-year period. The primary reason for the decrease was the pay down on $1,438 of notes payable during the three months ended September 30, 2005.

We have no material commitments for capital expenditures. Our 5% convertible preferred stock (which ranks prior to our common stock), carries cumulative dividends, when and as declared, at an annual rate of $50 per share. The aggregate amount of such dividends in arrears at September 30, 2005, was approximately $458.

Our capital requirements depend on numerous factors, including market acceptance of our products and services, the resources we devote to marketing and selling our products and services, and other factors. The report of our independent auditors accompanying our June 30, 2005 financial statements includes an explanatory paragraph indicating there is a substantial doubt about our ability to continue as a going concern, due primarily to the decreases in our working capital and net worth.

CONTINGENT LIABILITY



The Company accrues and discloses contingent liabilities in its consolidated financial statements in accordance with Statement of Financial Accounting Standards ("SFAS") No. 5, Accounting for Contingencies. SFAS No. 5 requires accrual of contingent liabilities that are considered probable to occur and that can be reasonably estimated. For contingent liabilities that are considered reasonably possible to occur, financial statement disclosure is required, including the range of possible loss if it can be reasonably determined. The Company has disclosed in its audited financial statements several issues that it believes are reasonably possible to occur, although it cannot determine the range of possible loss in all cases. As these issues develop, the Company will continue to evaluate the probability of future loss and the potential range of such losses. If such evaluation were to determine that a loss was probable and the loss could be reasonably estimated, the Company would be required to accrue its estimated loss, which would reduce net income in the period that such determination was made.

OFF-BALANCE ARRANGEMENTS



There are no off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors, except for the following.. As of September 8, 2004, Warning Management Services, Inc. ("Warning") purchased all of the issued and outstanding shares of Employment Systems, Inc. ("ESI") for $1,500. The purchase was $750 cash paid at the closing and a $750 note payable. In connection with this transaction, the Company agreed to be a guarantor of the $750 note payable. Our CEO, Brian Bonar, is also the CEO of Warning. As inducement to enter into this guarantee, we were given a non-cancelable 2-year payroll processing contract with ESI. Currently the $750 note payable is in dispute. Warning is claiming that certain representations made by ESI were not correct and is proposing that the purchase price be reduced, thus reducing the $750 note payable to $258. Management has evaluated this contingent liability and has determined that no loss is anticipated as a result of this guarantee.

http://biz.yahoo.com/e/051121/drdf.ob10qsb.html

Hello,

Sold DRDF.OB @ $0.0035
(Please read David's last article: «Current General Market Overview (http://www.3stocksonfire.org/trading/index.php?topic=3785.0)» for details)

best regards !

Out today at .0034.

Small loss

Still holding DRDF!   
                                                                                                                                               What's the deal with blocks of shares of "100" going through? That's .36 cents. Buying or selling 100 shares is ridiculous. I've seen this a number of times. Anyone have a clue? Is this some manipulation attempt?

2005-12-14 16:26:10 
The Solvis Group Announces $10.6 Million in Revenues in Fourth Quarter Ended Sept. 30, 2005 


ANAHEIM, Calif., Dec. 14 /PRNewswire-FirstCall/ -- The Solvis Group, Inc.,
(OTC: SLVG), a subsidiary of Dalrada Financial Corporation
(OTC Bulletin Board: DRDF), contributed revenues of $10.6 million on Dalrada's
consolidated financial statements for the fourth quarter ended
September 30, 2005. The Solvis Group contributed approximately $22.6 million
in revenues for the fiscal year.
Additionally, The Solvis Group said it continues to work on audits of its
prior periods in order to achieve re-listing of its common stock on the
Over-the-Counter Bulletin Board.
"In this period prior to resumption of filing our quarterly and annual
results to shareholders on Forms 10-QSB and 10-KSB, we will continue to
provide shareholders updated information as it becomes available," said Brian
Bonar, CEO.
"We are very pleased to report that our revenues continue to grow as our
staffing business progresses," Mr. Bonar added.
About The Solvis Group:
The Solvis Group (OTC: SLVG), a subsidiary of Dalrada Financial
Corporation (OTC Bulletin Board: DRDF), includes a number of operating units,
including M&M Nursing Services, CallCenterHR(TM), and Master Staffing. The
Company provides a variety of innovative financial services to businesses,
including comprehensive human resource administration including payroll and
workers compensation insurance; and employee benefits such as health
insurance, supplemental insurance, HSA savings plans, 125 cafeteria plans, and
401(k) plans. The Company also offers debit card payroll accounts and payroll
advances. These services enable small employers to offer benefits and
services to their employees that are generally available only to large
companies.
The Company also includes an imaging products and services unit, Imaging
Tech, Inc., which provides a variety of innovating products and services
associated with graphics, photography, and color management. Its technologies
include ColorBlind(R) software and PhotoMotion Images(TM). For more
information visit The Solvis Group websites at: www.thesolvisgroup.com,
www.mandmnursing.com, www.colorvisuals.com, and www.color.com.
About Dalrada Financial Corp.
Dalrada Financial Corporation (OTC Bulletin Board: DRDF) was founded in
1982. Headquartered in San Diego, California, the Company provides a variety
of professional services related to human resources to businesses. In
addition to its temporary staffing business, Dalrada provides a variety of
innovative financial services to businesses, including comprehensive human
resource administration and employee benefits such as health insurance, HSA
savings plans, and 401(k) plans. Dalrada also offers debit card payroll
accounts and payroll advances. These services enable small employers to offer
benefits and services to their employees that are generally available only to
large companies. Information on the Company is available at the Dalrada
Financial Web site at dalrada.com. A number of Dalrada's subsidiaries,
including SourceOne Group(TM), a professional employer organizations that
provide a variety of personnel and human resources services to small to
medium-sized businesses. Further information can be obtained on the following
internet site: sourceonegroupinc.com.
Safe Harbor
Statements in this press release may constitute forward-looking statements
and are subject to numerous risks and uncertainties, including the failure to
complete successfully the development of new or enhanced products, the
Company's future capital needs, the lack of market demand for any new or
enhanced products the Company may develop, any actions by the Company's
partners that may be adverse to the Company, the success of competitive
products, other economic factors affecting the Company and its markets,
seasonal changes, and other risks detailed from time to time in the Company's
filings with the U.S. Securities and Exchange Commission. The actual results
may differ materially from those contained in this press release. The Company
disclaims any obligation to update any statements in this press release.
CONTACT:

Brian Bonar, CEO
The Solvis Group
1520 South Lewis
Anaheim, CA 92805
714/300-0500
[email protected]

Paul Knopick
E & E Communications
949/707-5365
[email protected]
SOURCE The Solvis Group, Inc.

Press Release   Source: Dalrada Financial Corporation

WOW   >:D


Dalrada Financial Reports Second Quarter Results
Wednesday February 22, 9:20 am ET
- $17.8 Million Revenues; $3.3 Million Net Profit -

SAN DIEGO, Feb. 22 /PRNewswire-FirstCall/ -- Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News) today announced its financial results for the second quarter ended December 31, 2005. The Company reported revenues of $17.8 million for the quarter, a 263 percent increase over the prior year period. Net income for the second quarter was $3.3 million.

ADVERTISEMENT
For the six-month period ended December 31, 2005, Dalrada reported revenues of $29.9 million compared to $9.4 million in the prior year period. Net income for the six month period was $3.1 million.

"We are especially pleased with these results as they are indicative of the direction we set for the Company two years ago," said Brian Bonar, CEO. "Our balance sheet continues to improve and our business prospects are positive moving forward," he added.

Dalrada provides employer business solutions to small and medium-size businesses. Its customers outsource many administrative tasks associated with human resources management to Dalrada. Services include payroll processing, workers' compensation insurance, employee benefits (including 401k and health insurance plans), and business risk management (including general and professional liability insurance), and staffing services.

Dalrada provides these services through its subsidiary companies and operating groups, which include: SourceOne Group, Heritage Staffing, The Solvis Group, M&M Nursing, MedicalHR, and CallCenterHR. Its Solvis subsidiary also operates ImageTech, Inc., whose proprietary products include ColorBlind® software and PhotoMotion(TM), a patented color medium of multi-image transparencies.

About Dalrada Financial Corporation:

Dalrada Financial Corporation provides employer business solutions to small to medium-size businesses. The Company assists clients in providing a wide variety of management and employee programs that increase business efficiency. These include: payroll and human resources support, staffing, employee benefits, risk management insurance (including workers' compensation and business liability), financial management, and other business management products and services.

Information on the Dalrada family of companies is available at: www.dalrada.com, www.thesolvisgroup.com, www.mandmnursing.com, www.colorvisuals.com, and www.color.com.

Safe Harbor:

Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.

    CONTACT:
    Brian Bonar, CEO
    Dalrada Financial Corp.
    9449 Balboa Avenue
    San Diego, CA 92123
    (858) 277-5300
    [email protected]

Quote
I think DRDF.OB is a sure 5 bagger, I just need time and patience. Altough I'm pretty positive on this outcome, I have just a little more than $1,000 invested on this penny stock.

Wow, is the right thing. Doubled in one day   :o :o :o :o

I was patient and did not sell  ::)

Great news! DRDF definitely shows perspective for the future. :)

Amarens

I've been holding this one for months also. 300,000 shares  @ .0036 and .0044. looks like patience is paying off. I almost pulled the trigger to sell @.009 today, but didn't do it. I might try to wait for .03 to .05. 

Yahoo reports market cap of 5.68 Mil.

The Company reported revenues of $17.8 million for the quarter, a 263 percent increase over the prior year period. Net income for the second quarter was $3.3 million.

For the six-month period ended December 31, 2005, Dalrada reported revenues of $29.9 million compared to $9.4 million in the prior year period. Net income for the six month period was $3.1 million.

I've been holding forever also.  Tripled up this morn.  Unlike averaging down, putting more money in at a higher price is good.  So I invested as much as I gained this morning and expect the share price to finally reflect the income this company is bringing in.  So yeah, 5.6 million market cap, net income at .004 per share, per quarter.  .012 cents annual net earnings forward. approximate price per share .008.  All adds up to a .66 price/net income :o  Nice! 
   So let's figure if we had a modest p/e of say 5. Share price should be-----.06?  Just thinkin'.  If anyone can critique the train of thought please do.  I'm willin' to be shot down hard, so don't hold back.  Bash away!

Crapped out :-\ :-[ what the #$^%$*&  piece of  @#^&*   I'll be more careful next time.  Could go lower.  Here's the daily. ;) And a weekly 8)

Shipman I'm with you.  I gave you an applaud for your assessment above. I'm no expert, but I think this will go higher. I believe the pull back was typical on a large one day gain as we had on wednesday. I might be dreaming, but I still plan on holding for .03 to .05.

DRDF is picking up some steam, up 26%

Thanks JB,
     Did you take a look at the  weekly?  Looks as if we are still ground floor.
Should be an interesting ride. Holding tight for now.

One thing I've been learning from traders like EliteG, volume, volume and more volume! Well, we've had volume for 3 days. Let's hope traders pick up on it this week-end. Next week might be VERY exciting!

DRDF on fire today! ... very weak fire  :(

http://biz.yahoo.com/prnews/060523/latu045.html?.v=59

Dalrada Financial Reports Third Quarter Results
Tuesday May 23, 8:00 am ET
9-Month Revenues Jump 340% to $48.8 Million
$2.3 Million Net Income for Quarter; $5.4 Million Year-to-Date

SAN DIEGO, May 23 /PRNewswire-FirstCall/ -- Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News) today announced its financial results for the third quarter ended March 31, 2006. The Company reported revenues of $18.9 million for the quarter, a 347 percent increase over the prior year period. Net income for the third quarter was $2.3 million.

After previous report was a huge rally...

http://biz.yahoo.com/prnews/060222/law034.html?.v=40

Dalrada Financial Reports Second Quarter Results
Wednesday February 22, 9:20 am ET
- $17.8 Million Revenues; $3.3 Million Net Profit -

SAN DIEGO, Feb. 22 /PRNewswire-FirstCall/ -- Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News) today announced its financial results for the second quarter ended December 31, 2005. The Company reported revenues of $17.8 million for the quarter, a 263 percent increase over the prior year period. Net income for the second quarter was $3.3 million

I've received notice from DRDF and I'd like to ask an experts "Reverse split  - how it will affect the stock price?" ???

IMHO it's a huge dilution... and may be it's a reason of a weak rally that we see today.

Here is a approximate quotation from DRDF notice:

...Annual meeting of Stockholders will be held on May 25, 2006 at 9:00 am.
The Board plans to perform Reverse Split of the common stock in an exchange ratio of 1 New Share for each 200 Old Shares....
   
       Number of Shares          Prior to Reverse Split       After 1-for-200
                                                                              Reverse Split
Common Stock Authorized        1,000,000,000             1,000,000,000
Common Stock Outstanding         977,175,933                  4,885,880
Available for future sale                 22,824,067               995,114,120

Wow 1 for 200 that is quite a reverse. I was thinking 1 for 10 would be appropriate. I think a big RS like 1 for 200 would produce a big run in stock price. A market cap of $4M for a company that has earned $5.4M through 3 quarters is ridiculous. Trading at a sub-penny level there are many who won't take these results seriously. Trading at $1 after the split and more people will be interested. And with under 5M shares outstanding the stock would be low float.

I traded a stock called RCO back in Dec 04 that did a big reverse split and, a few days after the split, the stock took off and quintipled in under a week. And RCO was a POS - a financial disaster.

Hi Lucas,
Thank you for your answer. So you think, that it will not be a huge dilution?
They will receive a lot of new shares to sell:
Available for future sale                 22,824,067               995,114,120


moreover, they writes, that "...Company is contractually obligated to issue approximately 2.8 billion shares of Common Stock, wich exceeds the amount of shares of Common Stock the Company is currently authorized to issue..."

Quotemoreover, they writes, that "...Company is contractually obligated to issue approximately 2.8 billion shares of Common Stock, wich exceeds the amount of shares of Common Stock the Company is currently authorized to issue..."

Contractually obligated to issue that many shares? That does not sound good. Not good at all. :(

Watch this one.  Ascending triangle breakout on above average volume. ;D